Employee retention remains a top priority for HR leaders in 2024, study finds
Forty-five percent of organizations said that retaining talent is a top priority for the coming year, and 62% of HR teams said the same.
When companies focus on the wellbeing of their employees, the benefits can be far-reaching. A recent study by Gallagher examined current and emerging trends to help employers optimize their investments in the wellbeing of their organization as a whole. As in previous years, employee retention remains a top priority.
According to the study, employers are feeling optimistic about the coming year. More than 9 in 10 employers either project an increase in revenue by 2025, or expect it to stay about the same. Additionally, over half of employers said they expect to see a rise in headcount.
Despite this optimism, the study predicts that HR leaders and operations teams will remain focused on employee retention in the coming year. Forty-five percent of organizations said that retaining talent is a top priority for the coming year, and 62% of HR teams said the same.
Over the past year, the study found that 1 in 2 organizations experienced a turnover rate of 15%, similar to the previous year. Additionally, two-thirds of organizations recorded turnover rates that were either similar or lower than projected.
While attrition rates seem to be stabilizing, the study points out that it is essential for employers to watch for “rust-out” or feelings of “disinterest and detachment among employees who lack meaningful tasks or purpose.” Rust-out tends to be higher for women who do not feel recognized, are positioned at the director level, or for women of color who are underrepresented in leadership positions.
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Additionally, the study found that younger employees pose a higher risk of attrition. Eighty percent of employees within the 25-35 age group said they would leave – or have already left a job – if they felt underutilized or understimulated.
To avoid losing valuable talent, the study recommends that employers, “fully understand workforce needs and priorities, and deliver work experiences that are aligned with generational and gender expectations.” Moreover, the study recommends that employers help their workers set meaningful and challenging goals, provide continuous opportunities for learning and growth as well as develop progression plans.